Question

Perform a Porters 5 Forces Analysis on Teslas Industry (don't forget to define the industry)

Answer 1

Tesla is a compay that comes under automotives industries. This industry becgan in 1890 and now has come up to extend that driverless car is been manufactured. this sector has seen so much of innovation and new competiton that it has always improved exponentially. So many players like ford, Gm has got that legacy that they have maintained from so many years. This industry is so intensely competitive due to so many players that survival in the industry has becoma a task. The better the product and services the better the chance to survive.

below the porter's forces are mentioned.

Bargaining power of Buyers (low)

They do not produce in bulk and the products are not standardized so the bargaining power of buyer won’t be high. In the industry there are very less competitors. It like monopolistic market hence the buyer don’t have that much power.

Threat of Substitute (Low-medium)

The few substitutes include hybrids, public transportation, hydrogen vehicles etc. The substitutes are at lower end so the buyers who are price sensitive will go for such products.

Bargaining power of supplier (low)

Many firms rely on maximum two auto makers to buy the products. The supplier firms must contend with the substitute products for the industry. Supply chain and product strategies are aligned tightly.

Rivalry Among Existing competitors (high)

The automobiles are not the big ones like ford, GM etc. Global companies now compete. Making the ecosystem quite competitive. Innovation is now a key for survival in the industry.

Barriers to entry (High)

High fixed cost and economies of scales keep s the new entrants far. The market is actually saturated of good players and the competition is so intense that even if some player enters they wont be able to survive.